Latest research for Debt Advisory Centre reveals that 45.4% of consumers use one or more type of non-traditional finance (other than payday loans), such as store cards, Hire Purchase/Personal Contract Plans, doorstep loans or credit union loans. This is equivalent to 22.8 million people across the country.

Other forms of non-traditional borrowing used by UK consumers include items bought on credit from catalogues or websites, 0% finance/’buy now, pay later’ deals and paying for purchases in weekly or monthly instalments. Paying on credit for items bought online or from catalogues is the most popular form of non-traditional borrowing, with nearly a quarter (23.5%) of consumers revealing they are currently using this type of credit.

Store cards are used by one in eight (15.8%) shoppers, but are particularly popular among young people, with more than a quarter (26.4%) of respondents aged between 18 and 24 years old revealing they use them. This compares to just 6.2% of people aged over 55. This age group is also the least likely to have any form of non-traditional borrowing to their name, with just over a quarter (28.2%) of over-55s making use of this type of credit.

13.4% shoppers are currently paying retailers in weekly or monthly instalments for furniture, appliances or gadgets they have bought. Of these, 40.4% reveal they are at least one month behind with their payments. Meanwhile, 35.8% of people with store cards admit they have fallen behind a month or more with their repayments.

5% of respondents to DAC’s survey say they have taken out a doorstep loan or borrowed from an agent who delivered the funds to their home. This is the type of non-traditional loan borrowers are most likely to have fallen behind with payments on. More than two-fifths (43.5%) of doorstep loan customers say they are at least one month behind with payments, and 15.2% are more than two months behind.

Debt Advisory Centre spokesman Ian Williams said: “It is not just borrowing money on credit cards and personal loans that can cause debt problems. Catalogue debt, for example, is very common amongst clients coming to us for debt advice.

“The problem with non-traditional borrowing is that the interest you pay for it is frequently a lot higher than it is on traditional loans and credit cards. And because people often borrow small amounts at a time, they don’t realise how fast these debts can mount up.

“It’s important customers making use of non-traditional credit seek help and advice quickly if they are having trouble paying it back within the agreed timeframe. If not, what started off as a small amount of borrowing could quickly become unmanageable.”